Correlation Between Chengtun Mining and Guilin Seamild
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By analyzing existing cross correlation between Chengtun Mining Group and Guilin Seamild Foods, you can compare the effects of market volatilities on Chengtun Mining and Guilin Seamild and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Chengtun Mining with a short position of Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Guilin Seamild.
Diversification Opportunities for Chengtun Mining and Guilin Seamild
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengtun and Guilin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods and Chengtun Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Chengtun Mining Group are associated (or correlated) with Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Guilin Seamild go up and down completely randomly.
Pair Corralation between Chengtun Mining and Guilin Seamild
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 1.11 times more return on investment than Guilin Seamild. However, Chengtun Mining is 1.11 times more volatile than Guilin Seamild Foods. It trades about 0.02 of its potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.0 per unit of risk. If you would invest 466.00 in Chengtun Mining Group on August 31, 2024 and sell it today you would earn a total of 16.00 from holding Chengtun Mining Group or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Guilin Seamild Foods
Performance |
| Timeline |
| Chengtun Mining Group |
| Guilin Seamild Foods |
Chengtun Mining and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Guilin Seamild
The main advantage of trading using opposite Chengtun Mining and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Guilin Seamild can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.| Chengtun Mining vs. Northern United Publishing | Chengtun Mining vs. Dymatic Chemicals | Chengtun Mining vs. StarPower Semiconductor | Chengtun Mining vs. Chinese Universe Publishing |
| Guilin Seamild vs. Lutian Machinery Co | Guilin Seamild vs. PetroChina Co Ltd | Guilin Seamild vs. Bank of China | Guilin Seamild vs. Gansu Jiu Steel |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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